Genesis Block’s exposure to bankrupt crypto exchange FTX is reportedly more than $50 million.
The considerable exposure has led to the firm suspending OTC trading services.
Withdrawals on the platform are said to be functional as of now.
One of Genesis’ officials formerly served as a director at FTX in Hong Kong.
The firm used to be Asia’s biggest Bitcoin ATM operator.
Crypto over-the-counter (OTC) trading platform Genesis Block has become the latest casualty of FTX’s collapse. The Hong Kong-based firm reportedly has a significant chunk of its funds stuck on Sam Bankman-Fried’s bankrupt crypto exchange FTX. According to a report published by The Block, people familiar with the matter have revealed that Genesis Block’s current exposure to the Bahamas-based exchange stands at a whopping $50 million.
Genesis Block is shutting down OTC trading services
The firm is also shutting down its OTC trading services. Per a report by Reuters earlier today, Genesis Block informed its customers via email that it would be suspending all trading activities on the platform. Anticipating solvency issues at other crypto platforms as a result of FTX’s predicament, the firm has decided to cease its operations starting 10 December 2022. It is now evident that the firm’s exposure to FTX played a major role in suspending trading services.
We have ceased trading, as we don’t know which counterparties would fail next, so we would rather close out all our positions to regain some of our liquidity,” Genesis CEO Wincent Hung told Reuters.
Interestingly, Reuters’ had reported that one of Genesis’ officials had previously served as a director at FTX’s Hong Kong arm. The official in question reportedly resigned earlier this month.
Withdrawals on the Genesis Block are said to be functional as of now. However, the platform has urged customers to withdraw their funds and refrain from making any deposits.
Genesis Block used to be a major player in Asia’s Bitcoin ATM space. Before selling its ATM business last year, the firm operated Asia’s largest Bitcoin ATM network, spanning across Hong Kong and Taiwan.